Bears emerged as volatility rises after almost 10 days as Nifty continues to fall for third consecutive sessions. It was the third day as Nifty extended its fall with a deeper cut as it closed below 20 Days MA and tad above 50 days MA. The crucial supports have been breached in the short term.
Nifty on the daily chart has formed bearish belt hold which is a single candle pattern but reiterates the momentum in bears grip. A bearish belt hold has no upper shadow, or very small, and has a large red body with closing nears the low of the trading session. The larger the candle size equates to firmer the grip of bears and momentum may continue in coming sessions.
Nifty breached 10300 which was very pivotal for bulls to maintain the uptrend while not just that but a close below that confirms the momentum may further remain bearish with next support at 10150 – 10200. Any bounce back will be utilized by bears for position sizing.
We remain cautious with a sell on any rise approach as long as the market remains below 10300.
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